TaxTMI 
TaxTMI 
2026 (1) TMI 694
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....he petitioner herein filed a suit for recovery of money based on promissory note. It was the case of the petitioner that he lent a sum of Rs.80,00,000/- by cash to the respondents on 21.06.2016 and they executed the suit promissory note and agreed to repay the said sum with interest at the rate of 12% per annum. Since the respondents failed to pay the debt inspite of demand, the suit was laid for recovery of money. The respondents 1 and 2 who were arrayed as defendants 1 and 2 in the suit filed an application seeking direction to petitioner to reveal his PAN number and also seeking a direction to forward the copy of the plaint and other documents to jurisdictional Income Tax Authorities for the purpose of considering the violation of Sectio....
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.... [269ST. Mode of undertaking transactions.- No person shall receive an amount of two lakh rupees or more- (a) in aggregate from a person in a day; or (b) in respect of a single transaction; or (c) in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account: Provided that the provisions of this section shall not apply to- (i) any receipt by- (a) Government; (b) any banking company, post office savings bank or cooperative bank; (ii) transactions of the nature referred to in section 269SS; (iii) such other p....
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....ncome tax authorities. It is settled position that ignorance in fact is excusable but not the ignorance in law. Therefore, we deem it necessary to issue the following directions: (A) Whenever, a suit is filed with a claim that Rs. 2,00,000/- and above is paid by cash towards any transaction, the courts must intimate the same to the jurisdictional Income Tax Department to verify the transaction and the violation of Section 269ST of the Income Tax Act, if any, (B) Whenever, any such information is received either from the court or otherwise, the Jurisdictional Income Tax authority shall take appropriate steps by following the due process in law, (C) Whenever, a sum of Rs. 2,00,000/- and above is claimed to be paid b....
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....s, certainly, the transaction should be viewed with suspicion. Whether the transaction which has not been brought into the book or a black money transaction can be a subject matter of the suit and whether the Court can lend its helping hand to recover money based on such transaction are all matters to be decided at the time of final disposal of the suit. Therefore, I do not want to express any opinion on the said aspect. If ultimately the plaintiff is able to prove the payment of Rs.80,00,000/- by cash to the defendants, certainly it should be brought to the notice of the Income Tax Department for setting law into motion. 10. The Apex Court, in the above mentioned decisions with the noble object of abolishing black money transaction, iss....